Compensation · 3 COMPANIES
Employee equity is valuable only to the extent it is understood
How does an option package become a meaningful decision for an employee?
Grant size alone is insufficient. Without visibility into vesting, dilution, exercise cost, company-value scenarios and salary trade-offs, employees cannot assess real value.
Shared patterns
- 01
Equity is explained as a distinct component of total compensation.
- 02
Outcome scenarios make employee decisions easier.
- 03
The trade-off between cash and long-term value is made visible.
Important differences
Buffer emphasizes scenarios and education, GitLab a role-based framework and Netflix cash–option choice.
Trade-off
Transparent scenarios improve expectations but cannot remove liquidity and valuation uncertainty.
Put it into practice
Do not show only option count; show percentage, vesting, exercise cost and three value scenarios together.